13 Marketing Channels

Agents and Brokers
Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
Arm’s Length Relationship
A relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no/low expectation of future interaction or service
Channel Conflict
A clash of goals and methods between distribution channel members
Channel Control
A situation that occurs when one marketing channel member intentionally affects another member’s behavior
Channel Leader
A member of a marketing channel that exercises authority and power over the activities of other channel members
Channel Members
All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
Channel Partnering
The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
Channel Power
The capacity of a particular marketing channel member to control or influence the behavior of other channel members
Cooperative Relationship
A relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
Direct Channel
A distribution channel in which producers sell directly to consumers
Discrepancy of Assortment
The lack of all the items a customer needs to receive full satisfaction from a product or products
Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy
Dual Distribution
The use of two or more channels to distribute the same product to target market
Exclusive Distribution
A form of distribution that establishes one or a few dealers within a given area
Horizontal Conflict
A channel conflict that occurs among channel members on the same level
Intensive Distribution
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it
Integrated Relationship
A relationship between companies that is tightly connected, with linked processes across and between firm boundaries, and high levels of trust and interfirm commitment
Logistics
The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies
Marketing Channel
A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
Merchant Wholesaler
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
Retailer
A channel intermediary that sells mainly to consumers
Selective Distribution
A form of distribution achieved by screening dealers to eliminate all but a few in any single area
Spatial Discrepancy
The difference between the location of a producer and the location of widely scattered markets
Strategic Channel Alliance
A cooperative agreement between business firms to use the other’s already established distribution channel
Supply Chain
The connected chain of all of the business entities, both internal and external to the company, that perform or support the marketing channel functions
Temporal Discrepancy
A situation that occurs when a product is produced but a customer is not ready to buy it
Vertical Conflict
A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer